Aug6 update

Back in the office after a 5-day break in Paris, which included a 2nd place finish in the Paris 6-hour relay race. Nice!  Feeling very refreshed and in good spirits.  It certainly pays to have short breaks on a regular basis.

Markets continue to be fairly quiet.  ECB meeting is tomorrow.

The key change I did today was to implement a more rigid position management approach.  Based on the points I wrote down last Thursday – this included:

  • EMA10/20 crossover (xo) on 15M timeframe in “wrong” direction = automatic close
  • EMA’s not aligned as anticipated on 5M timeframe 30 minutes after entry = likely to close
  • EMA’s not aligned as anticipated on 1M timeframe 20 minutes after entry = likely to close (applied on short AUDUSD and EURGBP trades)
  • Position in loss after three completed 15M candles = likely to close
  • Once trade is +0.7R in profit, move stop to -0.2R (applied on short DAX trade)

Applying these rules today resulted in me closing four trades fairly quickly, and although I was “wrong” on four of the trades, each trade averaged a loss of only -0.38R.  In contrast the single winning trade I had (short USDJPY) produced a profit of 1.4R.  All in all, a scratch day.

As expected, the use of a more rigid position management approach allows for a reduction in stress throughout the day.

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